Accreditation standards exist so private-market investors can evaluate complex, illiquid securities—this page sketches categories; your verification packet and Rule 501 text control for any subscription.
At a glance
- Why it exists: SEC Rule 501 defines categories of accredited investors who may participate in certain exempt offerings—thresholds and categories update over time.
- Common paths: Income test, net-worth test (excluding primary residence per rule text), professional certifications, or qualifying entities—each has specific requirements.
- Process: Issuers verify accreditation through subscription workflows and documentation— not through casual self-attestation on a website form alone.
- 506(c) context: Pair with Reg D 506(c) overview for general solicitation, accredited-only purchases, and verification themes.
Common accredited categories (conceptual)
- Income test: Annual income above a threshold for the last two years with expectation of the same in the current year (amounts are defined by SEC rules).
- Net worth test: Net worth over $1 million excluding primary residence (subject to current rule text).
- Professional certifications: Certain holders of Series 7, 65, or 82 (as specified by SEC).
- Entity investors: Entities meeting asset thresholds or composed of accredited owners.
Why it matters
Accredited investor standards are intended to ensure participants have the financial capacity or sophistication to evaluate private, illiquid investments.
Verification
For an actual offering, Stoneforge (or its service providers) will collect documentation to verify status in accordance with the subscription process. This website does not constitute verification.
Entities and trusts (high level)
Certain entities qualify as accredited investors based on assets under management, ownership solely by accredited persons, or other tests spelled out in Rule 501. Trust structures may qualify under specific fiduciary and asset thresholds. Because entity eligibility is fact-specific, investors should rely on counsel and the verification checklist provided with each offering—not generalized web summaries.
Confirm current definitions
Regulatory text changes; amounts and qualifying credentials evolve. Before relying on any summary—including this one—pull the current Rule 501 language from official SEC sources or your attorney. Stoneforge’s educational pages are not legal advice and do not replace subscription procedures for a live deal.
Investment overview | Deal pipeline | Legal disclosures | Investor inquiries
Not legal advice. Securities rules change; confirm current Rule 501 definitions with qualified counsel.